Quarter of Shoppers Leave Phone Retailers Without Making a Purchase

A quarter of customers leave a mobile phone retailer without making a purchase, claims a survey commissioned by Amdocs. The company commissioned the survey of more than 4,000 consumers who use wireless phones or devices in the USA, UK and Canada and had visited a service provider's retail store over the past six months. ­More than 60 percent of respondents said that the reason they visited the store was to purchase a new handset or upgrade their existing device - however one in four consumers who visited the store left without making a purchase.

For those consumers who intended to make a purchase but did not go through with it, the survey found that half of these failed transactions could have been avoided if the retailer had been able to deliver a better customer experience.

Retail Matters More than Ever

Despite the option to purchase devices and plans online, consumers are still choosing to visit service providers' retail outlets. The top three reasons cited for visiting a retail store were: the ability to obtain the device right away; direct access to the device to "touch and feel" it before purchasing; to consult with an expert regarding the device's features and rate plans.

You had them at "Hello": 60 percent arrive to buy

While 60 percent of those surveyed visited retail outlets intending to make a purchase, one in four left without buying. The primary reasons for abandoning the purchase were the store representative was either not knowledgeable enough about the devices or service plans, or that the wait time to complete the transaction was too long.

Store sales staff received the lowest customer ratings in the areas of speed of service, as well as for their concern as to whether the customer had purchased the best service plan or phone to meet their needs; highest ratings were awarded for courtesy and friendliness.

The survey found that a smartphone transaction can take up to an average of 15 percent longer than a traditional phone purchase, with increased time and resources devoted to identifying the right product, completing the paperwork and finalizing the purchase.

Impact on brand perception:

Just 64 percent of those surveyed said that in-store experience had met their expectations and while a majority of customers left the store having their expectations met, only a small percentage (less than 20 percent) cited that the experience improved their perception of their service provider.

"A bad shopping experience in any channel will turn away customers and no company can afford to lose a customer intent on making a purchase" said Seth Nesbitt, vice president of product marketing for Amdocs. "With transactions becoming more complicated and devices more sophisticated, store reps need tools that let them to focus on meeting a customer's specific needs, while reducing the time to complete a transaction. Only then can they maximize every retail interaction."

Methodology

The survey was conducted by an independent global research firm in September 2009

Posted to the site on 25th September 2009